INTRODUCTION
Household Income Events are appropriate to model a change in Household Income isolated from Industry production and payroll. In Household Income Events, you can specify the specific income group(s) receiving the income. Examples would be a government stimulus check or tax refund.
Household Income values should include all new Household Income the residents will receive including personal tax and savings. IMPLAN will automatically deduct personal tax and savings. Household spending of income on imported goods and services will also be treated as leakage.
|
Event Type |
Household Income Events |
|
Event Use |
Analyzing a change in Household Income separately from production |
|
Event Specification ”WHO” |
HH LT15K, HH 15-30K, HH 30-40K, HH 40-50K, HH 50-70K, HH 70-100K, HH 100-150K, HH 150-200K ,HH GT200K |
|
Event Value “WHAT” |
Total Household Income for specified income group |
HOUSEHOLD INCOME EVENTS
IMPLAN can be accessed via app.IMPLAN.com. Once you are logged in, you will be directed to the IMPLAN dashboard. From the dashboard you can navigate to the Regions, Impacts, or Projects screen.
Once you have chosen your Region and named your new Project, you will be directed to the Impacts screen. From here, click on Add New Event to create a Household Income Event. In this set of examples, 2018 Nevada data is utilized.
Household Income represents the income received by people for their participation in production, from government and business transfer payments, and from returns on capital (e.g., interest payments, dividends). Household Income Events allow the analyst to pick which income group(s) will receive the gain or loss of income.
|
Specification |
Explanation |
|
Households LT15k |
Those earning less than $15,000 |
|
Households 15-30K |
Those earning between $15,000 and $30,000 |
|
Households 30-40K |
Those earning between $30,000 and $40,000 |
|
Households 40-50K |
Those earning between $40,000 and $50,000 |
|
Households 50-70K |
Those earning between $50,000 and $70,000 |
|
Households 70-100K |
Those earning between $70,000 and $100,000 |
|
Households 100-150K |
Those earning between $100,000 and $150,000 |
|
Households 150-200K |
Those earning between $150,000 and $200,000 |
|
Households GT200K |
Those earning greater than $200,000 |
In this example, there will be a stimulus check for households that earn less than $40,000. We are told this will result in $2,000,000 of new income in Nevada for households earning less than $15K, $1,500,000 for households earning between $15-30K, and $3,000,000 for households earning between $30-40K. Therefore, we will set up one Household Income Event for each household level.
Now that you have your Events, ensure that all are highlighted in teal by clicking on them individually or checking Select All Events at the top of the screen. Now the Events can be dragged into your Group on the right.
You will know when the Events have populated in the Group when the number in the upper right of the Group box equals the number of Events.
Now click Run in the bottom right of the Impacts Screen.
The first thing you will notice is that there are no Direct or Indirect Effects. Household Income Events only affect household spending, so there will only be Induced Effects. Learn more in the article Explaining Event Types.
In this example, we included three Events, so the default on the Results screen will include all three. If you want to look at the impacts for just one Event, click on Filters and search for the Event Name that you want to see.
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Written July 13, 2020
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